Customer Story of a Bad Experience Blog

TTEC4849 Business Practice and Vehicle Safety

Customer Story of a Bad Experience

Instructions: Divide up into small groups. Read the following story, and

discuss the following questions in your small groups. Then write your answers

in the space provided.

This is a true story.

The year was about 1958, in California, before there were strong consumer

laws. Don Higgins owned a laundry and dry cleaning business, in which he

used one of the new Volkswagen bus trade vans for his deliveries. He would

pick up dirty clothes from businesses (like restaurants and auto repair shops),

clean them and deliver them back. He liked his Volkswagen van: it had lots of

space to hang the clothes and it got good fuel economy. Up until recently, it

had been very reliable. But lately the engine wasn’t running very well. The

engine was regularly missing and had low power.

So in the morning, Don took his van to his local auto repair shop. He told them

it needed fixing, maybe just a tune up, and he got a ride back to his cleaning

business. Then in mid-afternoon, he went back to pick up his van.

To his surprise, the van wasn’t ready. If fact, the repair shop owner showed

Don the engine that was now out of the van. The exhaust valve for number 3

cylinder was burnt, causing the poor running engine and lack of power. The

shop owner said he could have the engine fixed and back in the van in 3 or 4

days. And the bill would be about $400.00. (In 1958, this was a lot of money.

Don’s monthly mortgage on his house was only about $120.00 per month.)

Don was very upset. He was so upset that I (Steve McAfee) heard about this

as the little boy who lived next door to Don.

Discussion Questions:

1. From Don’s point of view, what was wrong here? What did the shop do

wrong that upset Don so much. (After all, they were fixing his van.)

After taking the engine out and finding out the problem, they did not keep Don updated until he went pick up the car.  This would have been quite overwhelming for Don (shock of cost, engine taken out, and enormity of the job) as he was just expecting a simple tune up when he went to pick the car up.

2. From the repair shop owner’s point of view, what was wrong with Don

getting upset at them? What did they do right or wrong?

They were doing their job and trying to repair the problem.  However, their approach to the situation could have been better, especially with such big jobs.  It would have been better to inform Don before he came to pick the car up.

3. What should have been done in this circumstance? If you were Don, what

would you have wanted to be done?

The workshop should have endeavored to contact Don first before he went to pick the car up.  This would have prepared Don for the situation better as finding out on the site, seeing the engine out, shock of the cost would have rightfully upset Don. 

If I was Don, I would prefer to be contacted as soon as they find the problem so I could be better prepared for the job and cost.  I would probably be upset still, but be more receptive of it.

4. When the repair was finished, and Don went to pick up his van, he took the

van and did not pay the whole repair bill. Did the repair shop have the right to

hold the van until they got paid?

If both parties had agreed on a price to carry out the job then Don has the obligation to pay for the agreed amount (but nothing more). And goods cannot exchange hands until payment is settled.

However, if no price was agreed, Don would have the right to pay what is reasonable for the job and the workshop would not have the right to hold it if he paid this reasonable price.

5. If Don took the repair shop to court, what would you have ruled if you were

the judge? Should the repair shop pay for a replacement rental vehicle?

Should Don pay the whole repair bill? Should the repair shop pay Don for lost

business because he could not pick up and deliver clothes to his customers?

I would have ruled that Don should pay the full amount if they had agreed on the price before carrying out the job.  However, a rental vehicle should be at the discretion of both parties as part of the repair package. 

If the no price was agreed, then Don is not liable to pay more than what is deemed a reasonable price for the job.

No the shop should not be responsible for lost business as his work is not the workshop’s responsibility.  Don must sort out a way to keep his business running (whether it be getting a rental vehicle from the workshop or another source).

6. What New Zealand laws relate to this story? What do New Zealand laws

say should have been done in this case?

On the Consumer Guarantees Act 1993, it states that if there was no price agreed, the consumer is not liable to pay more than what is deemed reasonable for the job.  If there was an agreed price, then Don is obliged to pay for the agreed price.